According to commerce ministry officials, this will partly address the growing concern among political parties that SEZs are turning into real estate business. "There are units which wait for a year or so for land prices within an SEZ to appreciate and then sell it off to make a fast buck. We will ensure that this does not happen," an official told FE.
The proposed amendments, expected to be notified in a month, will ensure developers failing to get their zones notified within six months of receiving a formal approval not just lose clearance for their projects, but also cough up stamp duty to respective states for the land acquired.
The commerce ministry has asked states to ensure that developerswhich have obtained clearance in principle from the Board of Approvalare exempt from stamp duty not only for initial land acquisition but for all subsequent activities.
Units failing to operationalise
The ministry has decided to ask developers to not only get a non-encumbrance certificate for land acquired but also file a specific affidavit, stating it is litigation-free. "The amendments will specify that units will not be allowed to sell their waste in the domestic tariff area.